Grenada's real estate route comes in two forms. Reported at the time of writing, an applicant can qualify with a shared interest of at least US$270,000 in an approved project, or by owning a qualifying interest outright for at least US$350,000, in each case alongside a non-refundable government fee. The gap of US$80,000 looks like the whole story. It is not: the two forms usually mean owning quite different things, with different rights, costs and prospects at resale.
This page explains what shared and sole ownership typically involve, how co-ownership works in practice, how income and costs are divided, and what to check before choosing. Structures vary between projects and rules change, so confirm current minimums and the exact legal form of any interest with the Investment Migration Agency, your agent and an independent Grenadian attorney.
What "shared" usually means in practice
Shared ownership allows several programme applicants to invest jointly in a qualifying asset, each contributing at least the shared minimum. Depending on the project, this can take the form of a fractional interest in a specific villa or suite, a share in a company that owns a block of units, or a share in the project company that owns the whole hotel. Each investor's contribution supports their own citizenship application.
The practical result is often that a shared investor does not own a door they can lock. They own a percentage of an income-producing asset run by a hotel operator, with rights set out in a shareholders' agreement or a co-ownership deed rather than in a title to a particular apartment.
That is not necessarily a disadvantage. For most programme investors the unit is never going to be a home; it is a qualifying investment that must be held for five years. But it shapes what you can do with the asset, from using it for holidays to selling it at the end.
What "sole" usually means
Sole ownership means that one applicant holds the qualifying interest alone, at or above the higher minimum. In practice this is more likely to be a specific unit, such as a suite, apartment or villa within the resort, registered in the investor's name or held through a structure the project allows.
Sole owners usually have clearer title and more control. They are not tied to the decisions of co-investors, can deal with their own unit when the holding period ends, and may have more flexibility about personal use, subject to the hotel's rental and management agreement.
Many sole-ownership units still sit inside a rental pool, so the owner does not simply move in. Owners may have a set number of nights each year, and the rest of the time the unit earns income for the pool. Reading the management agreement is as important for a sole owner as for a shared investor.
Side-by-side: the differences that matter
Upfront cost. Shared is cheaper by the gap between the reported minimums. The government fee and application costs are broadly similar for both.
What you hold. Shared investors often hold shares or fractions; sole owners more often hold a defined unit. The legal form affects registration, transfer taxes and inheritance.
Control. Sole owners decide alone, within the management agreement. Shared investors are bound by co-ownership rules, which may require majority or unanimous agreement for major decisions.
Income. Both typically receive a share of rental pool income. For shared investors, distributions are divided according to their percentage, after costs.
Personal use. Sole owners usually get more defined use rights. Shared investors may receive a smaller allocation of nights, sometimes in any available room rather than a specific unit.
Exit. A sole unit can be marketed on its own. A shared interest may be harder to sell, especially outside the programme, because buyers of fractions are scarce.
Living with co-investors
Shared ownership puts you in a long-term relationship with people you probably will never meet, from different countries and with different goals. The agreement governing that relationship deserves close reading:
- How decisions are made about the asset, and what majority is needed to sell, refinance or change the operator.
- What happens if a co-investor's application is refused after you have bought, and whether the project substitutes a new investor.
- What happens if a co-investor stops paying their share of charges, and whether others must cover it.
- Whether you can sell your share independently at the end of the holding period, or only together with the others.
- Whether co-investors have a right of first refusal when one of them sells.
- How the interest passes on death, and whether the project's structure is recognised in your home country's inheritance law.
- Who keeps the register of owners and how you can verify your own entry in it.
Costs that apply to both forms
The purchase price is only the beginning. Both shared and sole investors pay the government fee, application and due diligence charges, legal fees for the purchase and the usual costs of translations, certifications and transfers. Depending on the structure, there may be stamp duty or registration costs on acquisition.
During the holding period, owners usually bear a share of maintenance, insurance and management costs, either invoiced or deducted from rental income. In a hotel with high running costs and modest occupancy, these can absorb most of the income in some years. Ask for the owner charges history of any operating project, not only the projected returns.
On sale, Grenada's property transfer tax and associated fees may apply, depending on whether the interest counts as real property or as shares, and on the seller's status. Your attorney should explain the position before you buy, since it affects the net amount you will recover.
Choosing between the two
Shared ownership tends to suit applicants for whom the real estate route is mainly a financial calculation: they want an asset with some chance of recovery, at the lowest qualifying price, and have no intention of using the property. The trade-off is less control and a potentially narrower exit.
Sole ownership tends to suit applicants who want a defined unit, value clear title, plan to use their nights at the resort or want to manage their own exit. It can also make sense for larger families, where the higher outlay is spread across more people. The trade-off is a larger sum tied up for at least five years.
Applicants who want an actual home in Grenada are usually best served by neither. A common approach is to qualify through the donation route, become a citizen and then buy an ordinary property, choosing it for its own merits rather than for programme eligibility. Whichever form you choose, decide on the basis of the exit you expect, not the headline minimum.
Questions to put to the developer about structure
Because the labels "shared" and "sole" hide so much variety, ask the developer to describe the structure in plain terms, then have your attorney check the description against the documents. Useful questions include: what exactly is registered in my name, and where; who holds the land title; how many investors share this asset; and how are distributions calculated and paid.
Ask, too, how the structure would be treated if the project company were sold or refinanced, and whether your interest would survive a change of hotel brand. For sole owners, ask whether the unit can be removed from the rental pool after the holding period, and on what notice.
Finally, ask for examples of previous resales within the same project or the developer's other projects, and in which form. A developer that can show orderly transfers of both shared and sole interests offers more comfort than one that has never had an investor leave.
Frequently asked questions
What are the minimums for shared and sole ownership in Grenada CBI?
At the time of writing, reported minimums were US$270,000 for a shared interest and US$350,000 for sole ownership in an approved project, plus a government fee. Figures change, so confirm current amounts with the IMA or a licensed agent.
Does shared ownership mean sharing a specific apartment?
Not always. Depending on the project, a shared interest may be a fraction of a particular unit, a share in a company that owns several units or a share in the whole hotel. The purchase agreement defines exactly what you own.
Can shared owners use the property for holidays?
Some projects offer shared investors a number of free nights each year, often in any available room. Terms vary widely, so read the management agreement rather than relying on marketing descriptions.
Is a shared interest harder to sell?
Often yes, particularly to buyers outside the programme, because fractional hotel interests appeal to few ordinary purchasers. Resale to new programme applicants depends on the rules in force at the time of sale.
Do both forms carry the same government fee?
Both are accompanied by a non-refundable government fee and the usual application, due diligence and processing charges. The amounts can depend on family size and current regulations, so ask your agent for a written schedule.
